Bangladeshi transport-tech startup Shuttle now has a total of $2.5 million in investments after it raised $1.5 million in a recent funding round led by South Asia Tech, a growth-stage VC fund that is focused on logistics and e-commerce startups in the region.
Other participants in the funding round were State-run VC fund Startup Bangladesh, investors from Bangladesh Angels Network (BAN), and existing backers, including Accelerating Asia.
With the additional investment, Shuttle gets a boost in its plan to expand its footprint across the country.
“The new funding will help us expand our footprint across the country through further investments in tech, product and team,” said Shuttle’s Co-Founder and CEO Reyasat Chowdhury.
Shuttle is a mass-transit startup that provides safe transportation to people in Bangadesh at an affordable fare. They move more people with fewer vehicles and caters to both B2B and B2C customers.
The startup also has B2B offerings that allow companies to provide daily commutes for their employees.
Shuttle that is based in Dhaka, started its journey in 2018 with pre-seed capital from Robi Axiata.
The ride-hailing startup claims that they charge less than one-third the price of regular ride-sharing by clubbing four to ten people in sedans and minivans.
After the initial success of its women-only service, Shuttle later on added unisex and B2B offerings to bring convenient and affordable daily commutes for middle-income people in Bangladesh.
More than 30,000 university students and office-goers are registered on the platform, with women consisting the majority of them.
The company has also worked with over 50 organizations (B2B clients), including the largest multinational companies.
The firm is set to launch a new service called Shuttle for School that will cater to students in Dhaka.
To date, Shuttle has a total addressable market of $13.5 billion in Bangladesh.
Shuttle’s other investors include SBK Tech Ventures, South Korean VC firm The Ventures, the BAN, and local/global angels.
The company also received an impact-matching grant from Biniyog Briddhi, a public-private development partnership between the Embassy of Switzerland in Bangladesh, Roots of Impact, and LightCastle Partners.